Australia’s Auswide Bank Ltd. (ASX:ABA) announced on Thursday it is increasing its equity stake in peer-to-peer lender MoneyPlace Holdings Pty Ltd.
According to Auswide Bank, it will have a controlling interest of at least 51% in MoneyPlace with the potential to increase that interest up to 75% dependent on the final take-up of other MoneyPlace shareholders in a capital raising initiative being undertaken by the online lender.
Auswide Bank Managing Director, Martin Barrett stated:
“Our funding has now exceeded $8million over the last 7 months and momentum continues to build. Loan quality has also been performing above expectations and we remain optimistic regarding future growth opportunities for the MoneyPlace and Auswide Bank partnership. Auswide Bank has a strategic focus to significantly grow our consumer lending book to provide an increased and diversified revenue stream. Now is the right time to substantially increase our equity stake in MoneyPlace as they pursue the next stage of growth with further technology advancements, strong risk management and growing business relationships. Our recent organic growth in our consumer lending and further investment in MoneyPlace demonstrates our growth ambitions and supports stronger returns for shareholders in the medium term.”
MoneyPlace founder and CEO, Stuart Stoyan, then added:
“Auswide Bank has been a strong partner over the past 12 months and we are delighted to have their continued support through our next phase of growth.”
Auswide Bank previously acquired a 19.3% equity stake in MoneyPlace in January 2016 and committed funds to the lender’s consumer lending program.